Solutions Manual
to accompany
Managerial
Accounting
Twelfth Edition
Ray H. Garrison
Professor Emeritus, Brigham Young University
Eric W. Noreen
Professor Emeritus, University of Washington
Peter C. Brewer
Miami University
,Solutions Manual to accompany
MANAGERIAL ACCOUNTING
Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Published by McGraw-Hill/Irwin,an imprint of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020.
Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the
prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or
transmission, or broadcast for distance learning.
1 2 3 4 5 6 7 8 9 0 QPD/QPD 0 9 8 7
ISBN: 978-0-07-320293-8
MHID: 0-07-320293-2
,Contents
Suggested Course Outlines ............................................................................ iv
Problem and Case Material Scaled as to Difficulty ............................................ v
Suggested Problem and Case Assignments ...................................................... vi
Chapter 1 Managerial Accounting and the Business Environment ................ 1
Chapter 2 Cost Terms, Concepts, and Classifications .................................. 19
Chapter 3 Systems Design: Job-Order Costing ........................................... 71
Chapter 4 Systems Design: Process Costing .............................................. 141
Chapter 5 Cost Behavior: Analysis and Use ............................................... 195
Chapter 6 Cost-Volume-Profit Relationships ............................................... 255
Chapter 7 Variable Costing: A Tool for Management .................................. 335
Chapter 8 Activity-Based Costing: A Tool to Aid Decision Making ................. 379
Chapter 9 Profit Planning ......................................................................... 455
Chapter 10 Standard Costs and the Balanced Scorecard ............................... 505
Chapter 11 Flexible Budgets and Overhead Analysis .................................... 591
Chapter 12 Segment Reporting and Decentralization ................................... 647
Chapter 13 Relevant Costs for Decision Making ........................................... 711
Chapter 14 Capital Budgeting Decisions ...................................................... 771
Chapter 15 “How Well Am I Doing?” Statement of Cash Flows ...................... 827
Chapter 16 “How Well Am I Doing?” Financial Statement Analysis ................ 877
Appendix A Pricing Products and Services ................................................... 925
Appendix B Profitability Analysis ................................................................. 949
© The McGraw-Hill Companies, Inc., 2008. All rights reserved.
Solutions Manual, Pricing Appendix 925
, Suggested Course Outlines
Course Outline #1: For lower division undergraduates who have completed one or two terms of
financial accounting.
Course Outline #2: For accounting majors or graduate students seeking a comprehensive course
Course Outline #3: in managerial accounting.
For management development programs and/or upper division survey courses
in managerial accounting.
All outlines assume 45 periods during a term with each period being 50 minutes in length.
COURSE OUTLINE COURSE OUTLINE COURSE OUTLINE
#1 #2 #3
Outline #1A Outline #1B
Chapter Periods Chapter Periods Chapter Periods Chapter Periods
1 1.0 1 1.0 1 1.0 1 2.0
2 3.0 16 3.0 2 3.0 2 2.5
3 3.0 17 2.5 3 3.0 3 3.0
4 3.0 2 2.0 4 3.0 5 2.0
5 3.0 3 3.0 5 2.0 6 3.0
6 3.0 4 2.5 6 3.0 7 2.5
7 2.0 5 2.5 7 2.0 8 3.0
8 3.5 6 2.5 8 3.0 9 3.0
9 3.0 7 2.0 9 3.0 10 3.0
10 3.5 8 3.0 10 3.0 11 3.0
11 3.0 9 3.0 11 3.0 12 4.5
12 3.0 10 3.0 12g 5.0
g g 13 g 5.5
g g
13 g 4.0 g 11
g 2.5
g g 13g 5.0
g g 14 g 5.0
g g
14 g 4.0 g 12
g 3.5
g g 14g 4.0
g g Tests g 3.0g gg
Tests g 3.0 g 13
g 3.0
g g Tests g 3.0 g gg 45.0 g
45.0 g 14
g 3.0
g g 45.0 g
Tests g 3.0 g gggg
45.0
g g
© The McGraw-Hill Companies, Inc., 2008. All rights reserved.
g g g g g g g g g
Solutions Manual, Pricing Appendix 926
g g g g g
to accompany
Managerial
Accounting
Twelfth Edition
Ray H. Garrison
Professor Emeritus, Brigham Young University
Eric W. Noreen
Professor Emeritus, University of Washington
Peter C. Brewer
Miami University
,Solutions Manual to accompany
MANAGERIAL ACCOUNTING
Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Published by McGraw-Hill/Irwin,an imprint of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020.
Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the
prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or
transmission, or broadcast for distance learning.
1 2 3 4 5 6 7 8 9 0 QPD/QPD 0 9 8 7
ISBN: 978-0-07-320293-8
MHID: 0-07-320293-2
,Contents
Suggested Course Outlines ............................................................................ iv
Problem and Case Material Scaled as to Difficulty ............................................ v
Suggested Problem and Case Assignments ...................................................... vi
Chapter 1 Managerial Accounting and the Business Environment ................ 1
Chapter 2 Cost Terms, Concepts, and Classifications .................................. 19
Chapter 3 Systems Design: Job-Order Costing ........................................... 71
Chapter 4 Systems Design: Process Costing .............................................. 141
Chapter 5 Cost Behavior: Analysis and Use ............................................... 195
Chapter 6 Cost-Volume-Profit Relationships ............................................... 255
Chapter 7 Variable Costing: A Tool for Management .................................. 335
Chapter 8 Activity-Based Costing: A Tool to Aid Decision Making ................. 379
Chapter 9 Profit Planning ......................................................................... 455
Chapter 10 Standard Costs and the Balanced Scorecard ............................... 505
Chapter 11 Flexible Budgets and Overhead Analysis .................................... 591
Chapter 12 Segment Reporting and Decentralization ................................... 647
Chapter 13 Relevant Costs for Decision Making ........................................... 711
Chapter 14 Capital Budgeting Decisions ...................................................... 771
Chapter 15 “How Well Am I Doing?” Statement of Cash Flows ...................... 827
Chapter 16 “How Well Am I Doing?” Financial Statement Analysis ................ 877
Appendix A Pricing Products and Services ................................................... 925
Appendix B Profitability Analysis ................................................................. 949
© The McGraw-Hill Companies, Inc., 2008. All rights reserved.
Solutions Manual, Pricing Appendix 925
, Suggested Course Outlines
Course Outline #1: For lower division undergraduates who have completed one or two terms of
financial accounting.
Course Outline #2: For accounting majors or graduate students seeking a comprehensive course
Course Outline #3: in managerial accounting.
For management development programs and/or upper division survey courses
in managerial accounting.
All outlines assume 45 periods during a term with each period being 50 minutes in length.
COURSE OUTLINE COURSE OUTLINE COURSE OUTLINE
#1 #2 #3
Outline #1A Outline #1B
Chapter Periods Chapter Periods Chapter Periods Chapter Periods
1 1.0 1 1.0 1 1.0 1 2.0
2 3.0 16 3.0 2 3.0 2 2.5
3 3.0 17 2.5 3 3.0 3 3.0
4 3.0 2 2.0 4 3.0 5 2.0
5 3.0 3 3.0 5 2.0 6 3.0
6 3.0 4 2.5 6 3.0 7 2.5
7 2.0 5 2.5 7 2.0 8 3.0
8 3.5 6 2.5 8 3.0 9 3.0
9 3.0 7 2.0 9 3.0 10 3.0
10 3.5 8 3.0 10 3.0 11 3.0
11 3.0 9 3.0 11 3.0 12 4.5
12 3.0 10 3.0 12g 5.0
g g 13 g 5.5
g g
13 g 4.0 g 11
g 2.5
g g 13g 5.0
g g 14 g 5.0
g g
14 g 4.0 g 12
g 3.5
g g 14g 4.0
g g Tests g 3.0g gg
Tests g 3.0 g 13
g 3.0
g g Tests g 3.0 g gg 45.0 g
45.0 g 14
g 3.0
g g 45.0 g
Tests g 3.0 g gggg
45.0
g g
© The McGraw-Hill Companies, Inc., 2008. All rights reserved.
g g g g g g g g g
Solutions Manual, Pricing Appendix 926
g g g g g
